Groupama // Universal Registration Document 2022

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EARNINGS AND FINANCIAL POSITION Management report of the Board of Directors

(d) Romania Premium income of the Romanian subsidiary Groupama Asigur ă ri rose by 82.5% over the period to €603 million as at 31 December 2022. It should be remembered that on the motor liability segment, this growth stemmed from the failure of a major player, resulting in natural market flows to the other players in its motor liability portfolio, whereas on the other segments, the subsidiary has pursued balanced development. This very strong growth was achieved by prioritising underwriting balances (quality of underwriting and the price/risk balance) in a context of sustained inflation in the country. Property and casualty insurance (€570 million) was driven by the strong growth of the passenger vehicle insurance segment (nearly 85% of property and casualty insurance premiums), with its premium income doubling over the period. The non ‑ life motor segment rose by 27.9% (due to the increase in new business and the average premium), while premium income in the liability segment tripled over the period, as the subsidiary benefited from the effects of the failure of the major player mentioned above. Life and health insurance premium income (€33 million) increased 29.5% over the period, driven by growth in group health (+47.1%), particularly due to the development of new business. The Romanian subsidiary’s economic operating income represented a profit of €28 million in 2022 compared with €1 million as at 31 December 2021. The net combined ratio of property and casualty insurance improved by 4.3 points to 97.4%. This change is explained by the strong growth in motor liability insurance premiums. The growth in premiums had a very favourable impact on the operating expense ratio (-7.8 points to 28.1%), with the volume effect clearly allowing fixed costs to be better absorbed. On the other hand, the loss ratio was up (+4.3 points at 65.2%) under the effect of a conservative approach to provisioning in motor insurance (due to a smaller decline in the because of the sharp change in volume of the portfolio) and home insurance. This approach also incorporated the impact of inflation on the cost of claims, which also weighed on the externalisation of liquidation surpluses. The current loss experience improved thanks to the decrease in the attritional loss experience, particularly the frequency of motor insurance claims (stemming from telecommuting and higher oil prices), which also reflects dynamic pricing management in a difficult environment marked by inflation. Life and health insurance underwriting income improved thanks to the individual protection segment.

(e) Net income, which amounted to €33 million, includes a tax profit of €5 million associated with the utilisation of tax losses in a context of better visibility of the forward ‑ looking trajectory. Bulgaria In Bulgaria, the premium income of the subsidiaries Groupama Zastrahovane and Groupama Zhivotozastrahovane climbed 14.2% to €34 million as at 31 December 2022. Life and health insurance remained stable compared with the previous period and amounted to €13 million, with the growth in group protection (+6.0%) offset by the decline in the individual savings/pensions segment (-29.6%). The property and casualty insurance business (€21 million) increased by 23.1%, driven by the growth in the financial loss (+48.9%), home (+21.9%), and passenger vehicle (+9.0%, broken down into +49.1% in property and casualty insurance and -29.3% in liability insurance) segments. The contribution of the Bulgarian subsidiaries to the Group’s net income was +€3 million versus €1 million as at 31 December 2021. Gan Outre ‑ Mer Gan Outre ‑ Mer’s premium income rose 3.1% to €70 million as at 31 December 2022. The property and casualty insurance business brought in €60 million (+2.5%) and was driven by the good performance of the passenger vehicle (+2.8%) and home (+4.7%) insurance segments. Life and health insurance premium income (mainly individual health) increased by 6.9% to €10 million. Gan Outre ‑ Mer’s economic operating income totalled €6 million as at 31 December 2022 compared with €4 million in 2021. Net underwriting income in property and casualty insurance increased by +€4 million with a net combined ratio that improved 6.2 points to 86.2%. The operating cost rate was up 0.2 points at 28.1% in 2022. Gan Outre ‑ Mer’s net income totalled €6 million in 2022 compared with €4 million in 2021. Tunisia The equity ‑ method income of the Tunisian subsidiary Star was +€3 million as of 31 December 2022. China The Chinese subsidiary’s contribution was +€5 million compared with +€3 million as at 31 December 2021. (f) (g) (h) The recurring financial margin (net of profit sharing and taxes) improved significantly due to the increase in interest rates and cash from the contribution of the motor liability business.

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Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES